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tv   First Up With Angie Lau  Bloomberg  June 21, 2015 7:00pm-9:01pm EDT

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angie: down to the wire. time for grace with the deadline rapidly approaching. athens potential exit from the eurozone. june, taylor swift says apple music is heading the wrong note. welcome to first up. ,oming to you live in hong kong streaming on let's take a look at markets
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this morning for trading day of the week, in new zealand it is fractionally lower. $.69 and continuing to weaken. counting down to the opens in australia, japan and korea. heading to japan, this was the view from japan on friday. it primed above the 20,000 mark. we are seeing futures in chicago pointing to a higher open. boj keeping the annual pace of stimulus to ¥80 trillion. unchanged, dollar yen, is weakening. of the on the heels move. one market closed in the region. there will be no trading in because of dragon boat day. the top story is grace, with -- losing creditors are patience with athens reluctance
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to compromise. serious.e getting more >> crunch time for real. a showdown in brussels, they set the pace with 17 euro zone. time is running out, june 30 is the default deadline. this, amid pressure on both sides. anti-austerityng protests coming to the street in athens on sunday. the creditors saying greases greece's prime close tois coming too default. the window for compromise has narrowed. that is what the eurozone leaders will seek. angela merkel on friday told a meeting that she did not see a need for an emergency summit on monday, until the greeks gain
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ground. she has been neutral and all of this but she is said to be losing patience in the process. angie: there is a fair amount of buzz in the market that he is overplaying his hand with respect to chancellor merkel. zeb: open plan willingness to give ground. she will come to the meeting according to sources with a figure of $1.1 billion. that would be the annual financial cost to germany if greece defaults. that is the estimate right now. that is seen as manageable. lessens the greek ability to negotiate here. the germans have figured out, we can pay for it, we can handle it. that has lessened her patients ce. as theien negotiations have dragged down, the euro is down significantly
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and isn't moving a lot. it is a marsh -- marginally up. deadline, june 30. angie: it is the final deadline, for now. thank you so much for that. you can get more on greece and the top stories in our digital destination, bloomberg business, all new digital content. we hunt for the financial industry's most wanted hacker. how he evaded authorities for almost a decade. a monster weekend at the box office as your resting world -- rassic world sets records. as we space the prospect -- face the prospect of a meltdown in greece, investors in asia are bracing for the worst. how bad could it the? david is here to detail that. david: when you talk about
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contagion, there are a lot of factors. we are talking about the spread for the new premiums that would eventually be demanded by investors should the worst happening greece. will asian corporate underperform, the say, their peers? these premiums will most likely go up, but it may be short-lived. analysts say of course there will be contagion. you can't ignore it. it is a manager of -- it is a matter of, how long does it go? weeks or months? blackrock, the debate is how long the contagion will last. commerzbank is saying asian credit will be resilient. there will probably be a knee-jerk reaction, it comes down to how ecb manages the risk
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and talks to yields down, if they do step in. outrelated risks, to watch for. the first is the debt of age and -- asian corporate's who have bought european assets. analystses that their brought up, three gorges, high term security. these companies have bought assets or business is in portugal. the second is the flight of the dollar, the safe haven trade. on top of the rate hike, it will put money back into the dollar. if the dollar strengthens and we lots of dollar-denominated detonation, 65 billion issued this quarter, the paramount of debt out there. will we see the same sort of credit squeeze freezing of credit markets we saw in 2008? no.
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hopefully not. about the's talk liquidity crunch in greece. of capitallk controls there. what is the likelihood that capital controls will be imposed? .avid: that will depend on ecb again, we took a look at the comments from analyst. they say over the next week, it will be likely that we will get capital controls. some say greece will not come out and preemptively impose capital controls. we are watching out for, we could see a bank holiday first. banks will let the open, then they step in to do that. at this point, the ecb will increase -- they increased the cap. they will discuss at the summit with her they need to increase it further. thanks, david. continuing to watch greece.
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air of optimism at the bank of japan seems to be winning over the critics. of consumers expected to rise 5%. that is more than the banks's target. they see the doj will continue easing until inflation stabilizes. earlier, there is no reason for the yen to drop further. that comment push the yen up. >> the pace of the foreign exchange rate, different factors move currency rates. the finance ministry may intervene in currency exchange markets when necessary, but the bank of japan monetary policy is focused on price targets and stability. yes trillion dollar is likely to fall below $.70.
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blackrock may be forced to cut interest rates due to weak capital spending. 17% but remains higher than where the central bank wants it to be. china's output, for the first time, is the bull market, driving up costs and squeezing profits. the china iron and steel association expects out -- output to fall 2%. producers are being hit -- hit with rising costs. iron ore prices up 19%. taylor swift says apple music, she has pulled her latest album in a row over compensation. what is your beef? afford toswift can have subscription services of
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her own. she is worried about musicians who are not in the kind of position she is. at the end of the month, apple is launching apple music. my $ he nine cents per person, and you can download their songs. they are trying to learn people in and not paying artists for the person -- the first three months. taylor swift says, that is not fair. this not for herself, but because she thinks it is unfair for the people in the music industry. it is not too late to change the policy, she says, and change the minds of those in the industry. be says musicians will gravely affected. provideon't ask us to music for no compensation.
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she is becoming one of the most powerful women in the world. she was voted that my forms. she is using the power to basically stand up for the other artist and musicians. she is pushing back against a business model apple decided to put forth and impose upon artists. what is this mean for the business model? >> apple is one of the main global retailers for music. but it is still playing catch-up with subscription services, like spotify. this is not the first time taylor swift has done this. she pulled her music from hasify last year, and she decided she will not let apple music have her album, her new hit album on apple music when it launches. as far as the music industry goes, downloading music is one of the most, it actually gets the most popular content hits on youtube.
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spotify has more than 60 million users. apple and itunes, although it has been successful with music retail, now they want to launch a subscription service. it is all about getting subscribers to download. angie: apple changed the industry when they started the download. now, they have to shift years and change as the industry shifts to more free content. >> that's it. the musicians are saying, how are we going to get compensated? thank you for that. still ahead, our next guest talks about china's central bank. how to boost growth. when we return. ♪
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angie: south korea has reported
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rs. 25 victims. in thes first identified arabian peninsula in 2012. it has affected more than 1000 people and killed 400 worldwide. the korean president postponed a because of the. outbreaks. the number of people killed by drinking tainted alcohol in india has risen to 94. over the weekend and 40 are in critical condition. police say it is the worst such incident in a decade illicit liquor is often spiked to increase policy. people died, 100 after drinking cheap alcohol in mumbai. banning inspections of military sites and international
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sanctions. the decision cap legates talks with a self-imposed deadline of the end of the month. washington has said it will not approve any deal without full .ccess congress may block it. china, the u.s., the west called a strategic dialogue. there may be tension in the air as the nations discuss a range of issues coming putting alleging chinese cyber attacks on u.s. government computers. sovereignty disputes, in the south china sea. on tuesday, we regained insight into the bank of japan's glands when it released minutes of its meetings. they left policy unchanged at record levels of's amulets. cut the numbero of policy meetings to eight next year in line with the fat.
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we're getting a view of the easing picture of asia when central banks in the philippines and taiwan announced policy decisions. the philippines may hold its benchmark rate of 4% despite gdp falling to a four-year low. in on what might be moving markets this week. chief economist at the bank of senate -- singapore, what is going to be moving markets? : we have been a couple weeks away from default or months. -- four months. do think ecb coming in and offering a little bit of reprieve or greek banks is a good sign? : ecb is in a whole. they can't trigger a crisis. bullock at the numbers.
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they are arguing about 1.5 euros on the deficit. ecb lopp them another -- lobbied them another 3 billion euros. angie: at the end today, is this political posturing? or is it economic reality? ard: it is about the principles of economic reform. the money is a small difference. angie: more of a symbol. in order to have a sustainable path to the economy, you can't be reliant on european support. it is more the basis of how you manage your economy. the greeks are saying, we want to run it the way we want. europeans are saying, then off you go. angie: what is the contagion on asia markets? : first we look for the contagion in europe. that is where it began.
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this time, there has not been much contagion, because the economies improved somewhat in the past three years. growth is better, if it's a are are down.ficits you would not expect to see contagion in asia. angie: there are a few things happening this week, china's flash pmi, they are calling it something different. manufacturing data coming up for china, we have the selloff last week in terms of chinese equities. do you think that will be offset by what is happening in greece? or there are other things that should be driving the bus? rd: china drives its own bus. the economy and markets seem to be independent of the rest of the world. we are looking at the pmi numbers. insights.the first there is suspicion about the
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quality of the chinese numbers. it is hard to fix the pmi. that is the impression, at least. stimulus on the economy over the past six months, pmi is still below 50. different than the past five years, when it has responded quickly to the stimulus. angie: why do you think it is not responding as quickly this time? the problems are deeper. maybe the real estate market problems are deeper and the structural slowdown in growth we have been seeing is harder. in which case, they need to make more to get the same results or accept that the trend growth rate has slowed and revise expectations. angie: housing prices showed fewer cities are seeing lower prices than previously, which is maybe we are seeing a bottoming out of the property market? it is encouraging.
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a lot of the activity in really whereat is there is no sign of turnaround. in an economic growth cents, 20% so far this year. that will be interesting. driving the bus has always been janet yellen. what do you think in terms of what other central banks in asia will do? the philippines, taiwan, determining policy rates this week. more divergence to calm? think they will be on hold. i think we have exhausted that. maybe korea, possibly thailand, but countries are under pressure. if anything, it will raise up. there got to respond in the end to the angie: currency
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pressures. angie: i think greece will lead much of this week. thank you so much for joining us, richard. coming up next, it costs $100 per jar, which is attracting the attention of counterfeiters. the business of fake honey, when we come back.
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angie: minute the honey is ace
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honey is the latest product attracting the attention of counterfeiters wanting a quick buck. >> the rich color in these bats of honey, the trade of the value. its reputation as a superfood earned the company more than $60 per kilogram. earning record stock prices. >> it is liquid gold. farprice per kilogram is over conventional honey. propertiesth giving attract skeptics, but studies support some of them. celebrity endorsements have boosted this. the market has spoken.
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minute ago honey retails at $100 per pot. where there is money to be made, there are counterfeiters. >> every year, an annual of 1700 honey arens of manuka produced in new zealand. global distribution is in the range of 10,000 tons. you are estimating that manukamately 83% of honey available for purchase is not real manuka honey. >> 80% of the exports go to china. that is where most of the fakes are uncovered. >> it is a truth and an issue. the creative ability of what we have created and the value proposition to export and sell overseas. it will be a challenge when you
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have counterfeiters or people operating outside the standards. the association and forces standards and is working on stricter rules to combat counterfeiters. we go to the break, italy has reinforced its dominance of the pizza market. 60 chefs created a pizza 1.6 kilometers long. it is a guinness world record. the feeds waited nearly five tons and included two tons of tomato paste.
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it is 7:30 in hong kong. that is a live look at what has -- what has been a gray day in hong kong. we are 30 minutes away from opening of trading in south korea. on tv and online, you are watching "first up." the top stories this hour, greece holds a new round of crunch talks with creditors today. that is ahead of the biggest
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bank saying it would be insane not to reach a deal. negotiators are in brussels, the clock is ticking for the deadline on june 12 -- june 30. four months of talks have so far proved fruitless. optimism inng arab japan is winning over critics. a government survey shows 40% of consumers expect prices to rise by as much as 5% over the next year. that is more than the bank's target of 2%. willovernor says the boj ease until inflation stabilizes. taylor swift told her latest album from apple music -- hold appletest album from music. she posted an open letter to apple on her blog, saying musicians would be unpaid. she withheld or music from spotify for the same reason. apple declined to comment.
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let's check in on markets. here in asia, to new zealand, gains fractionally higher. new zealand dollar is at 69 u.s. cents. counting down to the opens in australia, japan, and korea, let's head to japan. we saw some recovery there. up, a higher open despite greece. dollar-yen slightly weakening. let's return to the top story, greece cost increasingly narrow window to strike a debt deal with european creditors. the asia-pacific market angle, and the latest. brussels,atest out of we have afp reporting a few moments ago that the greeks have submit their proposals, their revised proposals to brussels as of an hour ago. the european commission has not
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received the updated proposals from greece. that is something many to see if are to happen. compromise is the keyword investors will look for as area leaders and the prime minister get set for a monday showdown beginning with the finance ministers meeting. then the ecb will hold a conference call on emergency bank funding. critical to avoid a bank run. at seven :00 p.m., the leaders meeting. an emergency summit, one that angela merkel has perhaps questioned the validity of. on friday, she spoke to her party and told them she did not see the need until the greeks came up with some new proposals. is holding a three-week gain. not a huge amount of fear. angie: what about asia? zeb: the reaction there will be
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a knee-jerk in the beginning, and a limited all-out. the length will be days, not weeks. lack rock says this is largely a european issue. there will be some duplication in the markets, be watching the impact on yield premiums, corporate bonds, as well. big investors here, blackrock one of the biggest. apparently there will be a limited impact his grace exits. that is something euro leaders are preparing for. there is no shortage of issues on the agenda as china and the u.s. meat for their annual strategic and economic dialogue this week in washington. the challenge may be finding topics on which they can agree. closer engle's takes a look. stephen: a lot of powerful powwows going on on monday. where did they start exactly? a long laundry list compiled
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over the last few years, cyberattacks the u.s. claims against china, south china sea disputes, transpacific partnerships with -- without aib, illegal trade of ivory even said to be on the agenda. oh yes, human rights, terrorism, intellectual property rights violations. they have been pushed on the list on the agenda. the most vexing strategic us is -- issues are said to be on the agenda monday morning in washington dc. there is quite a list. this is what a former u.s. diplomat and nixon's former translator during the 1970 to visit, he says there is a list it, year of u.s., he calls petulant, even acrimonious
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complaints about china. the airstrip china is building in the south china sea, the pentagon has made no bones about the fact that they will not let that just go unnoticed. also, the cyber theft of u.s. government employees's information that the u.s. claims originated from china. that will be an issue. at the backdrop of all of this visit.inping's they will not solve these issues. they want to smooth them down, tapped down the rhetoric and the attention, to smooth the way for a less than sharply worded visit. angie: normally, this is about economic cooperation and collaboration. even here, there is a lot of points of contention. -- ien: i have been a lot am into a lot of these dialogues. behind closed doors, they are
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focused on the contentious issues, but they want to liberal. oftentimes, that is on the economic climate change front. that is at the top of the list of deliverables on agreements between the two. at the center of the economic issues is the transpacific partnership, which excludes china. it is a u.s.-japan led initiative, free-trade area. the u.s. is kind of excluding china from that, or aib, china is leading that. the use -- the u.s. has chosen not to participate. these issues, from beijing's perspective, washington wants to marginalize china on a global front. thanks, steve. corporate stories, and krueger is here with that. >> bank of china maybe investigated for money laundering in italy.
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people are being investigated. more than $4.5 billion may have been transferred illicitly from italy to china. there has been no comment from the bank of china. glencoe has sold one of its nickel mines at a 90% discount. the corporation was valued at $2.4 billion in 2007. they have offloaded it for $19 million. -- follows the's disposing of assets the lost value. it was part of the acquisition of xstrata. prices have since collapsed. japan, rankord in -- raking in $15 million. he was the highest rank a -- paid executive in japan. gap with the u.s.,
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where the top 10 earners average over $100 million. those at the top corporate stories. jurassic other news, world has set records, earning more than $100 million in the second week to lead the north american box office. the universal pictures film has raked in more than $800 million around the world. out" the second earner. set a new high for an original pixar film. animation has become a multibillion dollar industry. skilled animators are in increasingly high demand. graduates of one french school are making their mark in hollywood and around the world. innovator for an
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for 20s -- and animator years. >> that is when jeffrey katzenberg convinced the frenchman to trade his paris apartment for a job and a house in los angeles. >> when i started at the studio, it was for the first project we did, "prince of egypt." of theer thinking character is a human being, a real person. seeing my first shot on the big screen. at first, he wasn't that interested in the american dream. >> being happy. -- he graduated from a school in paris, one of the top animation schools in the world. >> there is no animation school anywhere else. it was the first school there.
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for a long time, it was the only school. it had a high level of artistry and technique. those guys who were graduating from that school went back into the world. 25 ofme de la creme, only 700 applicants are selected every year. class is rushing to finish up their animations for the festival. that is were big studios, headhunters from pixar to disney and dreamworks, will be battling to hire them. the i talked to some people, they said, you are from france. >> she is not worried. upset not getting in.
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it can be a big plus in the industry. >> they will be competing with u.s. graduates. the huge success of animation has increased the need for talent. >> in london, shanghai, australia, south america, it helps a lot. >> many of these young creative's are likely to travel from paris to hollywood. angie: coming up, protest in greece ahead of emergency cuts that could decide the future in the euro. ♪
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angie: checking other headlines around the world, services have been held at the emanuel turgeon south carolina for the first time since nine people were killed there last week. messages of forgiveness and thanks to the local community for support. the governor has called for the death penalty for the gunman. a german judge decided -- may decide whether an al jazeera journalist may be extradited to egypt. this has prompted protests demanding his release. he was convicted in absentia on charges of torture, which the journalist denies. the leaders of japan and south korea will attend ceremonies and their capitals today marking 50 years of bilateral mimetic ties.
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it involves a meeting between foreign ministers in tokyo. relations have been strained over disputed islands and japan's legacy. today, the paved the way for the first meetings between the current leaders. greece faces more crunch talks. an emergency meeting will be held ahead of the june 30 deadline. supporters packed the center of athens demanding an end to austerity. >> it is sunday night. this is a pro-government rally. these people want to support the prime minister. meeting with other european leaders, talking about proposals and tensions and on taxes. lots of money the greeks need to
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pay debt. and to keep banks open. we are expecting them to open again monday morning. the big question, will they open on tuesday morning? whether or not things go up or indication ofgood how things in greece are developing. europe can do a deal at the 11th hour. ande: let's stay with grace -- let's stay with greece. thank you so much for joining us . if greece defaults, what are the oft, the first beginnings the ripple that could affect us all? if greecely, defaults, gradually, we could from the eurozone.
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at the same time, we should not underestimate the fact that , a newould be an effect election, it could be a referendum, about the future of greece in the eurozone. there could be a new government in place, or a national unity government emerging before like an exit. we know the situation is at the moment tense. angie: politically, one of the machinations within greece that could trigger reelections? >> it depends on whether the current government would deliver what they promise people they would deliver. all signs are, that in effect, overestimated-- what they could deliver and they realize that, in effect, the creditors, international creditors, expect accountability on the part of the greek government.
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unless they deliver from a specific measure, which would constraint incal the greek government's budget, they will not get funding in exchange, which was part of the bailout package. there's a lot of pressure on this government to deliver. negotiations will define whether people wish to see this government in place. angie: let's say there is no deal. what could happen if the ecb polls support from greek banks? >> that is the crux of the matter. on the greece defaults imf is not a major issue. the imf is not a private sector. by the end of this month, if european central bank says, you are not playing your role and
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your responsibility as a member country of the eurozone, and you are not showing flexibility as part of your commitment, we will pull the plug on greek banks. that would be the crux of the matter for the current government in greece. they know people in greece are nervous about this issue. by july 20, they have major commitments to the ecb. to where bothing parties are trying to make sure greece will remain within the eurozone. angie: what happens to greece's central-bank? what happens to the depositors with money still in the banks? >> i think that is a very serious issue. in effect, the greek banks are measuresn emergency
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supported by european central bank, which is providing them liquidity. if the greek people realize that these banks are going to have thetal control on tuesday, worst-case scenario, they will withdraw funds. we will see on monday morning, they will be nervous. we have to wait and see what will happen. ultimately, what do you think will happen? that, i thinkieve political, if you like, fortitude would prevail. germany and greece will come to a compromise. european authorities are putting enormous pressure now on the greek government to play its role, and they realize that their banking system could become insolvent, and that means greece could go bankrupt.
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the pressure they are under is far more. at the same time, the unity of the eurozone and the european union is an important global issue. we don't want to see what we have seen with regard to lehman brothers and the collapse there. allegations in europe are keen to make sure greece or remain within the eurozone. you so much for joining us today. the latest on greece, the director of the institute of global finance. good reports of a buyout make hyundai department store a market mover? will find out when we return. ♪
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angie: we are taking a look ahead to the openings in australia, japan and self korea. our reporters are here to talk
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about stuff they are keeping an eye on. >> south korea. abating, hopefully, it is good news. a major department store company, the korean daily mail, the economic daily newspaper reporting, that the department store and a tire store will be --ding to buy dongle express dongbutics company, express. you could have a did -- a department store and a tire maker buying a logistics company that ships freight and stock shelves, and also leads customers to the stores. of the tire company supplies the tires. dongbu appear, but
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it is not trading at the moment. angie: david. david: it is like owning a hospital and a funeral parlor. and the company that makes purses. rses. rhythm watch, they watchmaker, -- a share buyback as much as nine 9.95%.5% -- angie: we will see whether it goes. thanks. that is the verdict from the stock exchange. we'll be back in an hour to see how stocks have done. looking at the next hour of the show, taylor swift hits out at
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apple over the way it deals with artists. we will take a look at why she is withdrawing her songs. and australia and japan, we are counting down to the open. this is
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angie: crunch time for greece. negotiators had for emergency talks is the deadline is a week away. tears of follow-up, asia breaches -- fears of fallout, .sia braces for the worst four out of 10 people in japan see inflation rising. up."me to "first it is monday morning in asia. we are coming to you live from hong kong, streaming on mobile and
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our top story is greece. with a week to go for the deadline, athens is reluctant to compromise. creditors are losing patience. eckert is here with what to look for. zeb: the deal has been elusive for months. within the past hour, the greeks have submitted their proposal to the european commission. this will be reviewed before the meetings get underway at 12:30 p.m. in brussels. this is an emergency summit. the greek prime minister will face-off with 17 euro-area leaders. they will meet at 7:00 a.m. local time. the stakes could not be higher. june sir -- june 30 the deadline. the choice is between national
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promises and election promises to voters, and default. order on either end. political suicide, if you will, for the impact. we know there has been an impact already on the euro. down. what is telling, today, the euro is higher. investors are generally optimistic, cautious ahead of this. we will see what happens on monday. let's people think the prime minister maybe overplaying his hand. zeb: angela merkel has been very calm throughout this. she is working hard to keep greece a part of the eurozone. quietly, her government in berlin has been calculating the economic fallout of the greek exit from the eurozone, and the
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conclusion, from what we understand, is that it is tolerable. $1.1 billion per year to germany. if you look at it over a length of time, $40 billion over 40 years. the impact is something that an economy the size of germany could handle. she may show up at the meeting on monday not necessarily willing to extend an olive ranch an olivel of branch -- branch. sums it up prime minister has overplayed his hand. an interesting day in brussels. the crucial begin week for greece, markets are opening up across the region. here is david. morning.good it is crucial when you talk about greece, but there are
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other things in the mix. keep in mind, that is what we had on wall street on friday. we had marginal declines across the benchmark there. the china-u.s. index taking a ,eating following a 7% drop think got we will not be opening their today. it is a fairly important point. the mainland chinese markets are not open. hong kong is trading, but you do not have the conductivity northbound and southbound both ways. as far as what we are seeing right now across the region, mixed. look at south korea, outperforming in the opening minutes. up 9/10 of a point. cases and the mers south korea, 172 confirmed cases and the number of deaths there, we are at 27. these are updated figures on what is happening.
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200, flat. changes take effect today. we are not seeing the reaction. this was expected. the reallocation of the funds is something to consider. where we aret coming from, last week, it was not a good week for asian equities. massive outflow out of the region with the exception of indonesia, about every market across the region are still closed. japan, north of 3.3 billion. taiwan, 800-800 $50 million for the entirety of last week. that is something to consider, the overhang of greece obviously, very crucial there. the meetings are going on in europe. you have the finance me -- the andnce ministers meeting,
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towards midnight, you have the crucial leaders summit. will greece exercise goodwill, or take advantage of it? is the narrative. a quick look, as far as bond little.u.s. back up a we are up three or four. south korea coming back a little bit, down about 6-7 points. yield, very quick, let me get at what is happening across the markets. yen,r you and -- dollar 77/68. , bigave the kiwi dollar drop. pound sterling, big move up.
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lots to consider, a big trading week. let's see if things will get better. check in on other headlines. the continuing air of optimism that bank of japan is looming over -- winning over critics. 40% of consumers expect prices to rise by 5% over the next year, more than the banks'target of 2%. they say that doj will ease until inflation stabilizes. earlier this month, he said there was no reason for the yen to drop further. that pushed the yen up by the most this year. >> the central bank monetary policy is not meant to influence the case of the foreign exchange rate. different factors move currency rates. the finance ministry may intervene in the currency exchange market when necessary, but the bank of japan's monetary policies focus on price target and instability.
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angie: the world's largest asset manager says the australian dollar is likely to fall before -- below $.70. blackrock says the rba may be forced to cut interest rates by half a percentage points do to week capital spending. weak capital spending. china being investigated for money laundering in italy. 297 people implicated. more than $4.5 billion may have been transferred illicitly from italy to china. no comment from the bank of china. output will china's shrink as the bull market in iron or drives up costs. crude steel output will fall as
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much as 2% this year, producers are hit with rising costs and a collapse in steel prices. iron ore prices up 19% this quarter. taylor swift says apple music is out of to them with artists. she has called her latest album and a row over compensation. what is taylor swift say? itspple is launching streaming service on june 30. there is a free trial. they are trying to get more customers. you can access it free that time. that comes at the expense of the musicians. they will not get paid for three months. taylor swift says, i don't like this, i will not make available my hit album for you. is one of the most successful albums of last year. tu went on her tumbler --
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and said, it is unfair for apple to do this to musicians. have a look at what she has said , it is not too late to change the policy and change the minds of those in the music industry. she says, we don't ask for free iphones, so why are you ask inc. for free services from musicians? she wants to do something about this and change the policy, not because she needs to, and she said on her website she is not trying -- she is coming into that for the smaller musicians. those artists that can't make their living from going on the concert tour and getting people coming into their shows. she is using her power to get things to change for good in the industry. seen thee industry has business model shift in number of times. apple, on the back end of the
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latest shift, which is streaming rather than downloading each and every song that completely demonic monetized a lot of things for the industry. what does this mean for apple and the industry? and what taylor swift is insisting? >> apple is being caught on the back foot. apple is the world's most successful retailer of music. spotify, the subscription services, our trip -- are on encroach apple wants to launch apple music for nine and -- nine .ollars 90 -- $9.99 per month it is trying to get into subscription streamlining. music online is not going away. youtube, the biggest jon runyan access to youtube is for music videos.
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is playing catch-up, but not at the expense of musicians. says aour next guest generation of investors will turn their backs for a decade if things go wrong now. what that means, when "first up" returns. ♪
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angie: checking some of the headlines around the world, some rear of ordered more deaths from -- reported more deaths from victims, 27.ber of 1100isease is affected people and killed 400. the president of korean airlines says the impact could be break s- greater than that of sar 10 years ago. the number of people killed from drinking tainted alcohol in 294. has raised
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40 are in critical condition in what police say is the worst such incident in more than a decade. help officials say illicit liquor is often spiked with chemicals. 10 years ago said -- 10 people died after drinking cheap alcohol in mumbai. a german judge may decide today whether an al jazeera journalist should be extradited to egypt. his arrest in berlin prompted protest demanding his release. a court in cairo convicted him on charges of torture, which he denies. egypt accuses the network of supporting the muslim brotherhood, the party of ousted president mohamed morsi. market trading in the asia-pacific, what is happening in greece is having a bit of an impact, but not too much. 225 has displayed gains.
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australian equities down a quarter of 1%. my guest says graces close to the line. he is the founder and fun -- fund manager, joining us from singapore. clue -- too close to call. how is this playing out? >> good morning. best option is not to put any money in, because it depends too much on negotiations over the next days. the greek banks, lots of them, like most banks, have deposits greater than 100. they are living a day-to-day funding. money is being pulled out of the big banks every day. $1.75 billion, that may be what
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is withdrawn on monday. there's a slow-moving bank run. , andprecludes negotiations the ecb funding was enough for one day. they need to resolve this today. the medicine is being given day by day. close the patient is very to critical, it is beyond critical now. , put money in global equities, or are you just saying, let's chill out this week? are you being european specific or global? >> i don't have much in europe. most of the rest of the world, i've prefer to be market neutral whenever possible.
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market neutral strategies may be the way to go for the rest of the year, in my view. risky,g could be especially a trying to make money in that situation. angie: i what i do ask about china. it has been incredible growth there. if you were predicting 10% rise, you were a bear considering that the shanghai confidence has risen more than 150%. what on this bubble? what do you think it could happen is it first's -- if it burst? >> economic growth is slowing down. property growth will come down. these point to a slowdown. fight it with a margin fuel bubble is not the way to
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go. if people who significant savings at age 25-30, they will not come back to the stock market for another 10 years. that is the biggest impact. have had a bad experience. when they try to get profits, not all of them will be able to book profits because it is a self-fulfilling prophecy. the markets will fall, probably with the new set of ipos coming in. people will find out there is nobody on the other side of the trade. this might actually change the .syche of the chinese investors angie: the equity markets of liquidity for generations, thank you so much for that interesting point. next, tick tock, tick tock.
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greece is getting closer to its payment date. there is still no deal in sight. a look at what it means for currencies, when "first up" returns. ♪
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david: it is monday, and these are your headlines. to sayce, it is crucial the least. officials will meet today to
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discuss options on greece. and will be followed, by he-leaders meeting, which starts at midnight asia time. it shows goodwill for greece. it is available at the highest level. risk atimate the 30-40%. let's talk about money. the ecb through greece a lifeline, raising the cap by over 1.7 billion euros. continues to bleed deposits, north of 30 billion euros. the ecb again later today will be mulling raising the cap further. in contrast, pound sterling has
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been on a tear. strength of 2% against the dollar. the currency outperformed its major rivals. data was brought forward and expectations of the ble's provides a good alternative to the euro. they said a pound will strengthen against the euro. it was 70 pence per euro. year charge of pound sterling. we are back to the levels of last fall. looking at the charts, we may be looking at going back to the 160-161 level. we are bullish on that. let me wrap things up, euro-pound, here is the threshold. traffic world has
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maintained its record-setting performance, earning over $100 million in its second weekend. -- has rakedanked in over $100 million. pixar's "inside out" was second. it set a new high for an original pixar film. a movie statistic, up the top grossing films made in the u.s. between 2000 7-2013, less than 2% were directed by women. bloomberg spoke to a number of female directors about the discrimination they say exists in hollywood. told when i started that i couldn't be a director, because i was a woman. and i've been directing now for many years. but certainly, not as frequently as i would have had i been a man.
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i was going to meetings on project with people as a feature director who had worked with academy award nominated actors. i should have been taken seriously in these meetings. i wasn't. it was always a sense of, can you really do this? a man could do it better. your movie would have gotten a better distribution deal if you were a man. >> some people say, we can't do action movies. maybe we have taken boxing and fight classes. say,look at a man and maybe he doesn't know how to cook. >> we are not in the 19th century. >> we all have a different skill set to bring to the job. the job is completely
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gender-neutral. >> ask any man who is a wonderful career, loves what they are doing, what would happen it's someone told you, you can't do that because you have the wrong genitals? it is absurd. angie: you can watch more interviews in a special show later called "celluloid ceilings." 12:30 hong kong and singapore time, 2:30 in sydney. coming up, the world's two biggest economies talking washington. what's on the agenda when officials from china and the u.s. sit down to meet. .
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in hong kong.:30 we start this trading week on the gray side. and watching greece as well. an hour from the open of trade. you are watching "first up." ♪ angie: the top stories -- greek holds a new round with creditors. the biggest bank saying it would be insane not to reach a deal.
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negotiators, the clock is ticking toward a june 30 deadline. the government said four months of talks with mr. tsipras. the continuing air of optimism in japan seems to be winning over critics. that is more than the bank's target of 2%. governor corroded said the boj will continue easing -- kuroda said boj will continue easing. taylor swift has pulled her album from apple. she is upset that apple will not pay artists for a trial period. she withheld her music from spotify last year for the same reason. apple has declined to comment. trading in markets
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the asia pacific and we are seeing a little bit of a mixed picture. we are seeing gains for nikkei 225 and kospi. little on the asian agenda. really it is about greece. let's get on our top story. greece is in terrible -- is narrowly reaching. zeb eckert is joining us. brussels, a new proposal from the greeks just submitted in the past two hours. greece is -- in their package of reform and they delivered not necessarily what the european wanted them to deliver. it is setting up to be a crucial day. to hear thesting national head of the greek bank saying it would be insane for them not to reach a deal on monday. at 12:30 p.m., finance ministers meeting in brussels and the ecb
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will hold an emergency phone tol because they need provide additional emergency liquidity for the greek banking system which is not been growth as it is moment. you certainly could be at any stage. there's been a huge run of deposits. angie, 7:00 p.m., though first of 17 liters trying to come to some kind of deal. there's not been a lot of leeway. -- theope again europeans have compromise and now it is up to the greeks and will her there from multiple officials. the ball is in their court. angie: let's push ahead of the potential follows on asian markets. anything? zeb: it would be muted. that what big investors are saying. black rock would have an impact.
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a muted impact. we are talking about days, not weeks or months. system is relatively insulated compared to the last time in 2008. you have sufficient liquidity. swap lines internationally which could augment of the system to avoid a panic. , regulated alation ton of risk out of the banking system since 2008. put it all together and the germans seem to have come to conclusion as well that a greek exit from the euro could be manageable. and if your evidence. the euro is extending its third week of gains. lot of people thinking maybe there could be a deal done yet. zeb eckert, thank you. more on greece. let's head over and focus on china here. a very big meeting. no shortage on issues on the agenda.
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a annual strategic and economic dialogue in washington. the challenge may actually be finding points are they can agree. where do we start here? -- david: a long list of vexing issues. cyberattacks that the united states claim happened in the you -- claimed started in china. transpacific partnerships. pacific free trade a zone which does not include china. the investment bank said the united states chose not to participate in led by the chinese. illegal trading of animals and ivory is even going to be other discussion list. human rights, protection of intellectual property.
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never moved down the list. willful former u.s. diplomat and -- we have aslator former u.s. diplomat and a former translator for next and in the 1970's. he said there is acrimonious complaints about china. all of this against the backdrop really, they are laying the groundwork for xi jinping's visit to the u.s. in september. they want to smooth it over a little bit and make sure the noise does not address out the going to thef xi united states. angie: normally these talks focus on economic cooperation but it seems there's not really any major points of agreement. stephen: the partnership between the united states and china is often the big deliverables that the state department likes to use. we agree to disagree on these
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onues but we have progress the economic front. transpacific partnership is a sticking point. it does not include china, it excludes china. iab, the united states has taken that controversial view. ttp as ane view effort to let at u.s. keep writing the world's trade rules. a lot to be discussed. and it's agreed-upon. [laughter] angie: thank you so much stephen. let's take a look at some stories we are tracking today. roberta bank glencore has seen one of its nickel mines -- reporter: glencore has sold one of its nickel mines. glencore has now 19 million. the deal with xstrata follows in
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industry trend. it was part of glencore's acquisition and vault at the heart of the commodity boom. it has since collapsed. china aircraft said in the ceo quit. he resigned while on vacation. the company has not been able to contact them since. some sources say that the u.s. government -- and the chinese government is investigating. aircraft has reviewed records. they had a record 90% on friday. a director as softbank has hit a pay record raking in $15 million. the highest-paid executive in japan last year. the record [indiscernible]
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gopro's has more than $280 million last year. those are the top corporate stories. angie: snake oil or liquid gold? some remain skeptical of it as a superfood. up to $100 a jar, the latest product to track the attention -- attracted the attention of counterfeiters. paul allen has more. paul: the rich color. its reputation as a bacteria makes a go forod more than $50 per pilgrim. -- per kilogram. >> it is liquid gold.
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it is truly liquid gold. and the price per kilogram is making it grow five fold. skeptics therets are also studies supporting the wound healing and antibacterial credentials. some celebrity endorsements have helped to boost it from gwenyth paltrow to joy of it. -- two the tennis star who eats it per day. where there's money to be made, there is counterfeiters. year, 7000 terms of ituka honey is produced and is in the range of approximately 10,000 tons. your estimating approximately 83% of manuka honey available around the world is actually not
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real manuka honey. paul: is the value is found in the manuka trees. which exports go to china is also where most of the -- >> it is a real threat and issue. what isibility of created here and the value proposition. to be challenged and threatened when you have counterfeiters and people operating outside of the standards. paul: of the manuka honey association and forces the standards and is working on stricter rules. paul allen, bloomberg. we go to break, italy has reinforced the marketce of the pizza with the longest addition in the world. there it is. 60 of the top shelves were to
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through the night too great a p 6060 at the top shelves -- chefs worked it through the night to create the longest pizza. it was cooked for the milan world expo. slices for free. ♪
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angie: some of the stories making headlines. services have been held at the charlestonrch in since a white man killed nine members of the congregation. church members offered messages of forgiveness. the state governor has called for the death penalty of 21-year-old dylan roof. ban --ted to
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[indiscernible] the parliamentary decision may, k talks on the agreement with a self-imposed deadline after the end of the month. washington said it will not approve any deal without full access. senate may block it. the leaders of japan and south korea will attend services and their respective capitals market 50 years of bilateral diplomatic ties. it follows a meeting between their prime ministers, the first such talks since 2011. relationships have been strained over disputed areas. ceremony may pave the way for the first face-to-face meeting with the current leaders. music and our next guest has all sympathy for taylor swift who is standing up aainst apple and acting like
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schoolyard bully she said. we have got the ceo of the music connection here with us. thomas, you were a country head the biggestne of dream companies so you know streaming has really started to morph the digital music business and apple is trying to wrestle control with the apple/itunes or this new streaming service that is about to launch. what is it trying to do to musicians that taylor swift and is unfair? thats: it is a good thing out who gets into this market because they have enough power and it would help educate people about the advantages. nevertheless, for what you can believe from the media, the contract available that apple is offering to independent labels.
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if you're are led to believe what they say, they want artists to pay for their three-month trial service. aspects. are 2 first of all, subsidize a free service which is necessary for the customer acquisition. on the other side, they are basically giving artists a contract if you want to stay on itunes, you have to sign this agreement. basically a bundle they are offering to artists. we know the majority of your royalty income is coming from itunes but if you want to ,ontinue to have the benefits you have to sign up to our free service which will include making your music available for free for three months. this is the point of contention and this whole discussion. right, let's kind of
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forgets where livid at the 21st century and basically it harkens back to the day when musicians pushed out there albums or cds and radio stations play them for free. why is it not the same here? with thisrtists ok and not ok in the 21st century version model of this? thomas heymann: very different model to radio because this is rte streaming. ca you can basically listen on a streaming service and signing up to apple, you can listen three months for free. there's evidence it could be capitalizing -- hurting album sales. it pushes out the idea that music has no value and is free. bigger picture. apple is in the business of selling hardware and selling software. at the end of the day, they're using music to sell more of
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their devices. they want to come to the streaming game and they are distorting a level playing field and the competition by trying to get an advantage over their competitors such as spotify. basically being able to give away three months free service without actually having to pay for its? can they justify with our market power. is it actually legal? angie: what should apple do? thomas heymann: they should do like other streaming. they need to pay artists, where they are offering free service for customer acquisition. foundation tree independent labels like the maybury -- and they should treat independent labels like of the main stream labels. angie: what is the significance for mainstream artists like taylor swift? she can afford it.
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she says she is standing up for the smaller artists and levels who cannot. -- labels and cannot. thomas heymann: taylor swift stood up and it weren't for her. she is the biggest parties in the world right now. -- and it worked for her. -- she is the biggest artist in the world right now. europe spoke out. they said well apple's going to be quite boring if they are not offering independent music. the majority of interests and independent music like adele and other nationalist is from the independent side. you will find a lot of the opinion leaders and early adopters of the streaming services and that's was they are listening to. it is the scenario that apple really have to have a close look at. and certainly cannot bully independent labels and independent artists from deciding. it disadvantages of them.
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ultimately, isn't it all about the fans? what does it mean for the music fans? thomas heymann: of course, it is all about the fans. fans have any access of getting -- has many ways a getting access. from sound cloud to spotify, etc. at the end of the day, this is big news. apple is the biggest music retailer in the world. the majority of artists would have 50% or 6% of income from apple. if they are forcing you to sign up to the streaming service and you want to continue to be on itunes and forcing cute not to be paid for three months, as it -- and forcing you not to be paid for three months, it is schoolyard bullying. angie: thomas heymann, we will leave it in there. joining us live via skype from australia.
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department stores, one focus of a buyout. more when "first up" returns. ♪
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angie: singapore is a mom saw markets opening -- is among the markets opening at the top of the hour. indications it will rise. welcome to the stock exchange. what our reporters are watching. any shopping up hyundai department stores? reporter: there is. angie: not as much. reporter: look at that. ticking. licking and keep on
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ticking. growing because it is a unlikely deal. the newspaper reporting it will be joining hand cooked tire, a big tire maker to buy an integrated logistics company that does everything from on the loading at the ports to shipping freight and they have a taxi division. get theking is you goods to the department stores and the customers and hence could provide the tires that hand cooked provides the tires and it works nicely if it works. interesting. angie: it might work. zeb: smart thinking. angie: you know what works? buybacks. david: it is a clockmaker in japan. 3500 employees.
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$350 million in revenue. by back 10% of shares. $6 billion to be spent. 10% of that. raised the value of the shares in the markets. that is what investors are liking. that's the verdict from the stock exchange. our reporters picks. all right, trending business is next. yvonne man is stepping in. yvonne: tracking commodities. oil prices. and iran deal. greece is not the only one with a data line. with the happen prices. web seen the oil rebound from a six-year low faltering because the speculation of opec overproduction. we'll see what our guest have to
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say. i will talk about china stocks. close today but maybe a breather from friday. what will happen? we'll be talking about cyber security with semantics executive vp. angie: thank you for joining us on "first up." business" is up next. ♪
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yvonne: good morning. i am yvonne man. this is "trending business." over the next few hours, singapore and mumbai and los angeles. what we are watching. the euro strengthens i had all the latest crunch talks on greece. athens and satu h


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